Maximize Conversion Value - Bidding Strategies Guide Part 3

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Everybody has tried to scale a maximize conversion value bidding

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strategy with target return that spend knows is pretty much impossible.

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Why would you choose maximize conversion value over maximize conversions?

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Two main points.

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Google, can you make a sale?

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Yeah, I'm pretty good at making a sale.

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Okay, cool.

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Ignore all the bad sales stuff.

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Whoa, crap.

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Sometimes you can accidentally shoot yourself in the foot.

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so the maximize conversion value with a target return on ad spend does

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an even harder lock into a finite audience that maximize conversions

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at a target cost for acquisition.

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Just have it scaled to the.

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Immediately is the reasons why we exist as an agent.

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Google knows exactly where everyone's going all times.

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Talk about maximize conversion value.

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This is a bit different.

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Maximize conversion value takes a lot of the same traits

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as maximize conversions does.

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But the waiting system internally at Google gives more weight to the size of

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the conversion rather than if a conversion came in still an audience based bidding.

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Still going after people still less focused on keywords, but there's an

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added layer of complexity that we've just given Google, which sometimes

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is good and sometimes is a bad thing.

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And what I mean by that is when you have a maximized conversion value

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bidding strategy, rather than a maximize conversion bidding strategy,

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sometimes you can accidentally shoot yourself in the foot.

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what I mean by that is for example, let's say we're spending $20.

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And Google sees that you have a product list that is varying

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between $10 and $300 in price.

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Google's gonna say, well, I saw a $20 conversion come in and

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I've been spending $20 a day.

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Awesome.

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I made a hundred percent Roaz and then it starts to see more, a hundred

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dollars conversions coming in.

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Okay.

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It's gonna start to go after those more, those people.

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Well now what's your average order value that day.

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If you have five $20 sales and five, $100 sales, 60 ish is where you're gonna land.

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So you're gonna land around the $60 average order value.

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Well, what that do that just gave you a 300% row as automatically.

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Google is trying to get more higher purchase conversions based on the

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common denominators of those people who are purchasing higher items.

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It's not keyword based again.

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It's person based.

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Are they looking at these products?

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How long they've been looking at these products?

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Have they been looking at competitor websites, Google sees everything.

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That's why analytics was invented.

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Google sees where people are going.

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Seeing a tag manager, Google knows exactly where everyone's going.

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All times, all they did is just build a predictability model.

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That's why keywords let's focused on it.

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It's more about the bidding strategy, but what we're doing is we're identifying.

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What is a good, good value of the conversion when we're talking

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about maximize conversion value.

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Now let's add a little more complexity to the scenario.

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We have a $200 purchase come in and Google's gonna say, well,

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start to ignore those $20 sales.

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Let's start going after a hundred and $200 sales.

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Why I'm maximizing the conversion value?

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I will sacrifice five sales for two big.

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Ha.

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So if it's sacrificing five smaller sales for two bigger sales,

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yes, you did make more money, but your conversions went down.

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Your conversion rate went down.

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Your volume is possibly going down.

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Your daily ad spend is not being spent.

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Why?

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Well, because you asked Google to go after a harder objective.

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Google.

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Can you make a sale?

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Yeah, I'm pretty good at making a sale.

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Okay, cool.

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Ignore all the bad sales stuff.

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Whoa, crap.

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Now it's like, okay.

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And now make me sales and make me big sales.

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That's what maximize conversion value is.

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So if you see that the bigger purchases are less frequent,

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sometimes you can't scale out of it.

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Sometimes it can, again, situational based, but understand that Google is going

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to try to get rid of the small purchases that are happening at high frequency.

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Well, that's not that great though, because what you're doing is you're

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throwing out lower sales that are equalizing the higher sales.

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You have a $20 sale.

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You have a $200 sale.

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Great.

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Now your average order value is a hundred.

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That's good especi for you spending $20 a day.

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That's a five extra return.

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Why would you wanna get rid of, of those $20 sales that are increasing your, your

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conversion increase conversion rate?

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Now we have to talk about this is gonna be a, a different

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classroom topic, but it's a LTV.

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Those $20 sales are turning into what over time.

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Well, a $20 sale can turn into a $200 sale that can turn into five,

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$200 sales over the course of a year.

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Would you want to throw them out because you're focusing on only on higher sales.

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If the repeat rate's nothing and they're never gonna buy again then yeah.

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Then maybe you have to focus on those high sales, but it's always

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gonna be, it's always gonna be set by the goal of what the client needs.

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If the client needs high amount of sales and at least an average

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order value, that's decent, don't use maximize conversion value.

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Cause you're gonna toss out the 10 additional sales that could have

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turned into bigger sales that could have returned later on for the sake of

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getting fewer high, higher dollar sales.

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Now's a caveat though, to this maximize conversion value is what they call

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BBB a value-based bidding strategy.

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So value-based bidding strategies allow us to focus on new customer acquisition.

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More often cannot do that.

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Maximize conversions.

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So you can actually take a value-based bidding strategy and say we were

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actually, well, lemme just do this.

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Let me let me cancel this to see if this is this sun maximize conversion value.

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You can actually wait, this one's a search.

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Oh, I had it in here before we had a, we had search for new customers anyway.

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Oh no, that was a different campaign.

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Quick side note.

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You're gonna be able to use new customer needs search.

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It's just not, not available there.

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But if you're using a performance max, where you get focused on paying more

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for customers who spend more, that's something that you can use instead of

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maximize conversion value is if it was a new customer versus returning customer.

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If the new customers are spending more, it will start to get more

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newer customers have been using it.

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For a while and that's, that's been, that's been helpful, but

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again, you need high volume.

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You need to have an accurate list.

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You need to upload your list to Google and you need to select it in your settings and

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conversions for it to actually work well.

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It can't just rely on tag that's too inaccurate.

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So with the, with the maximized conversion value, why would you choose maximize

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conversion value over maximize convers?

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Two main points.

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One client doesn't have LTB.

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People are one and done.

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They need to make a high row as good maximize conversion value works.

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Where else does maximize convergence choose better than maximize conversions?

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Well, maximize conversion value will allow you to go after more newer

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customers over longer period of time.

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This is not a glitch.

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I'm interrupting the video you're watching because I need to remind

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you that I'm always looking for people to join our team.

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You can go to.

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Any level of value at all.

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Maybe think about giving me a thumbs up and subscribe to our channel.

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So they actually know that I know what I'm talking about.

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If you have questions, comments, concerns, or confessions hit

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me below in the comments.

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And now back to your regularly scheduled program, can't do

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that maximize conversions.

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So that's good.

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So this is, Hey, I'm okay with getting a little bit less volume.

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If I'm making more profit per sale, you can still scale up

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maximize conversion value.

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Now let's do TROs Tero S is even harder.

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So maximize conversion value is already harder to maximize convergence

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because they're asking for bigger sales, but then maximize conversion

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value with a target return on spend is even harder than maximize conversion

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value, which is already hard.

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Now we're asking Google spend only the amount of money for a big enough

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sale to triple my return on that.

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That is a very, very difficult thing to Google, to, to not only do consistently,

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but also scale everybody that's been has tried to scale a maximize conversion

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value BI strategy with target return.

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And that's been knows is pretty much impossible.

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You're gonna hit that point of dimension in returns.

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You will never break out of it just won't happen.

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So the reason why you can't just set a million dollar per day budget with

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a 500% return on ad spend, just have it scaled to the moon immediately is

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the reasons why we exist as an agency.

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You can't just set a 500% return, a thousand dollars, you know, a

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minute, we wouldn't all be here.

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We'd all be selling, you know, socks and making millions cuz you know, cause

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that'd be something that would be easy.

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So the maximize conversion value with a target return on ad spend does

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an even harder lock into a finite audience than maximize conversions

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at a target cost for acquisition.

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Because now we can tell Google is okay, member of our, our 100 person example.

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Let me take a sip of water here.

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Talk for like 20 minutes.

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Now with the maximize conversion value with the tar row, as it says,

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okay, you have a hundred people that you think are gonna convert.

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Yes.

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Who's gonna have a high sale.

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Well, that be 70 of those a hundred people.

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Now who's gonna have a high enough sale.

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That's gonna be quick enough then I'm not gonna have to spend a whole bunch

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of money on that's gonna convert today.

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30 of those.

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Okay.

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So now we've taken a hundred people, whittled it down to 60, whittle it

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down to 30 can't scale that, and that's gonna pay faster unless.

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There's high amounts of bottom of the funnel traffic that we know are gonna

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convert immediately all day long.

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And there's, they're growing.

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That's rare.

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So what you're doing is you're locking it into even a harder audience

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that may convert even less often, but your ROAS is gonna be amazing.

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And that's why we see our daily Aspen go from $500 a day to like,

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It's like, oh my gosh, I, I turn on maximize conversion value.

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And I say at target TRO as a 300% and Google said, cool, I got 12 people door

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you, you, we whittled it down at 12.

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Once those 12 are, are gone, then it's done.

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Like you have to restart this whole process.

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Now there's ways to, to expand that audience though, you can

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set a target return on spend.

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That's not as aggressive.

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If you need a 300% return, you can set a 200 row as.

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And you could be very profitable at 300%.

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Well, wait, wait a minute.

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How did you just said you could set a target returned asset of

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200% and get a consistent 300%?

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Yes.

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The reason being is that you're gonna get 200% sales or a 200% row as sale.

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You're also gonna get a 400% row as sale.

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What that average out to 300% you have to take law of averages.

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If I have a little bit of low, a little bit high, I balance out to where I.

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So if you need a campaign, for example, to hit a 300% return on Aspen, sometimes

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you can nail it by hitting 180 or two 20.

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That's the target return, Aspen.

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This, this one here I need, I, I need 150%.

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So I said it a hundred.

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I need to just simply break even I don't even know what this is doing searching.

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I don't even know what this is, is even doing.

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Let's just see there's too many campaigns here.

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Oh, yeah.

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68% not even spending this one is the search campaign though, that I've

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already, this one's an Australian company.

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That's a bad example or an Australian brand.

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But let's do this.

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So where do I have a T CPA on this is the UK one, 118%.

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I don't even know what my, my bidding strategy is.

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Yeah, a hundred.

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So I'm asking it to get a hundred is getting 118.

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This last.

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Okay, so it can get higher.

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So it doesn't, it doesn't stop it from going higher.

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It just means get me at least.

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So when you say, get me at least a is or high volume B, is it

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still falling above that goal?

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So you set a goal lower than what you need.

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I need one 50.

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I'm getting one 18, cuz I set it at 100 above, above my average taking into

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consideration all my campaigns though.

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And I'm getting a 1 71 still above the goal.

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So I'm keeping volume pie.

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That's how in this last 30 days we made 473 K and spent 275 K.

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So that's because I'm above that goal.

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But I have some campaigns that are giving me volume, giving me

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Roaz or sorry, giving me sales.

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They're not coming at it high enough RO as, so I'm not spending that much

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money on 'em, but I can get a 96 here and still spend, you know, I don't

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2,500 bucks cuz I made an additional.

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59 sales that boosts that 8,000 sale number.

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And I'm still above my average U T CPA to your advantage or sorry, TRO is to

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your advantage, but know that that's not skillable and that's going to die off and

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you're gonna have to restart that process.

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So that's how T CPA, sorry.

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That's how maximize conversion value with a TRO as works.

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It's a very difficult bidding strategy for Google to use.